Real Estate Update: CDC Announces COVID-19 Four-Month Residential Eviction Moratorium

On September 1, 2020, the Centers for Disease Control and Prevention (“CDC”), announced an order imposing a temporary moratorium on residential evictions to halt the further spread of the 2019 novel coronavirus disease (“COVID-19”) (“Order”). Effective September 4, 2020, the Order prohibits residential evictions of qualifying tenants through December 31, 2020. The CDC based the Order on Section 361 of the Public Health Service Act (42 U.S.C. Ch. 6A) and on 42 CFR § 70.2 which reads: Measures in the event of inadequate local control. Whenever the Director of the Centers for Disease Control and Prevention determines that the measures taken by health Read More …

Business Update: SEC Amends Accredited Investor Definitions

On August 26, 2020, the Securities and Exchange Commission (the “SEC”) adopted final rule amendments to modify the definition of an accredited investor in Rule 501(a) under the Securities Act. These amendments will become effective 60 days after publication in the Federal Register. The definition of accredited investor in Rule 501(a) is one of the principal tests to determine who is eligible to participate in the private capital markets through many of the exemptions and safe harbors from registration under the Securities Act, including Rules 506(b) and 506(c) of Regulation D. The new amendments will expand the categories of natural Read More …

Business Update: FASB Issues Proposed Update To Simplify Valuation Of Private Company Stock Options

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 governs the accounting treatment of all share-based payment transactions in which a company acquires goods or services by either (1) issuing company stock or (2) incurring liabilities that are based on the fair value of the company’s stock or settled by issuing company stock. ASC Topic 718 requires both publicly-traded and private companies that grant long-term incentive awards to recognize the fair value of the awards as compensation cost in their financial statements. Fair value is the valuation standard for financial reporting under US Generally Accepted Accounting Principles (“US GAAP”) and Read More …

Closing Time: Dissolving and Winding Up a Michigan For-Profit Corporation

Closing a business can be an exciting, difficult, or bittersweet decision depending on the circumstances. Regardless, and whether you are celebrating a liquidity event or heading back to the drawing board, founders, directors, and shareholders of Michigan for-profit corporations should consider formally dissolving their corporation and winding up its affairs before moving on. To successfully dissolve and wind up a Michigan for-profit corporation and receive maximum protection against known and unknown, outstanding liabilities, founders, directors, or their authorized representatives must follow specific steps set out by Michigan law and often the corporation’s governing documents, which are discussed in detail in Read More …